University rankings are clearly an important factor for international students and an essential element in the marketing mix of universities around the world.
After six years of reviewing the international tuition fees for all Australian universities, we have identified an insightful relationship between international rankings of Australian universities and the average international tuition fee for various programs.
The relationship is strong and remained solid in 2020.
Using the QS World University Rankings 2020 and 2020 annual international tuition fees from all Australian universities, Studymove has analysed and plotted the relationship between international ranking and international tuition fees.
Overall, the analysis reveals a clear relationship between a higher place in the QS World University Rankings and higher average tuition fees for international students. This relationship between rankings and fees may not be a surprise, but, it is surprising how strong the correlation is.
Chart 1.
Comparison of QS World University Rankings and average annual international tuition fee for undergraduate programs (2020)
Source: Huckel, D., Ramirez, K. (2020). Comparative Analysis of International Tuition Fees in Australia, 2020. Sydney, Australia: Studymove.
To measure how strong the relationship is between these two variables, we took a step further and calculated the correlation coefficient. The correlation coefficient (a value between -1 and +1) reveals how strongly two variables are related to each other.
When the correlation coefficient is close to 1, it means that the relationship between the two variables is really strong. The analysis shows that the correlation has been strong since 2016 and remains robust in 2020 (Chart 2).
Chart 2.
Historical correlation between QS World University Rankings and average annual international tuition fee for undergraduate programs (2020)
Our analysis highlights that there has been a clear inverse correlation between fees and rankings for undergraduate programs over the last five years. Basically, the higher the overall ranking a university has, the higher the annual undergraduate average international tuition fee.
Interestingly, but once again not surprising, is to see very similar results for postgraduate international tuition fees. In this case, the correlation and trend remain consistent with a correlation coefficient of -0.849 in 2020.
The relationship also exists at the subject level
Exploring this topic further, we have included an extended analysis for 17 subject areas.
Looking at QS World University Rankings by Subject and specific annual international fees for 17 subject areas, the analysis shows that in the majority of these subjects, the strong correlation between variables is evident (Table 1).
Table 1. Correlation between subject rankings and average fees in Australia (2020)
Disciplines with very strong correlationABSOLUTE VALUES HIGHER THAN 0.80 IN AT LEAST ONE STUDY LEVEL
|
|||
DISCIPLINE AREA |
CORRELATION UG PROGRAMS |
CORRELATION PG PROGRAMS |
|
|
1
|
ECONOMICS
|
-0.87
|
-0.95
|
|
2
|
ACCOUNTING & FINANCE
|
-0.87
|
-0.76
|
|
3
|
BIOLOGICAL SCIENCE
|
-0.82
|
-0.73
|
|
4
|
ENGINEERING (ELECTRICAL & ELECTRONIC)
|
-0.83
|
-0.79
|
|
5
|
COMPUTER SCIENCE & INFORMATION SYSTEMS
|
-0.81
|
-0.74
|
|
6
|
PSYCHOLOGY
|
-0.81
|
-0.73
|
Disciplines with strong correlationABSOLUTE VALUES BETWEEN 0.6 AND 0.8 IN AT LEAST ONE STUDY LEVEL
|
|||
|
7
|
ENGINEERING (MECHANICAL, AERONAUTICAL & MANUFACTURING)
|
-0.80
|
-0.75
|
|
8
|
BUSINESS & MANAGEMENT
|
-0.76
|
-0.63
|
|
9
|
ENVIRONMENTAL SCIENCES
|
-0.73
|
-0.69
|
|
10
|
PHARMACY *
|
-0.72
|
-0.08
|
|
11
|
ENGINEERING (CIVIL & STRUCTURAL)
|
-0.69
|
-0.68
|
|
12
|
LINGUISTICS
|
-0.69
|
-0.67
|
|
15
|
LAW
|
-0.68
|
-0.71
|
|
13
|
NURSING *
|
-0.65
|
-0.52
|
|
14
|
ARCHITECTURE / BUILT ENVIRONMENT*
|
-0.61
|
-0.47
|
Disciplines with moderate correlationABSOLUTE VALUES LOWER THAN 0.6
|
|||
|
16
|
COMMUNICATIONS AND MEDIA STUDIES
|
-0.55
|
-0.65
|
|
17
|
EDUCATION
|
-0.43
|
-0.32
|
However, there are some exceptions!
Fee setting decisions are complex and complicated however, this analysis provides a very interesting view of where universities sit on the scale considering both rankings and annual international tuition fees. However, we know that there are other elements such as location, graduate outcomes and the student experience, for example, which could also increase the value of the overall study experience at a university.
So, this general trend may not apply to all universities but it’s clear that this element greatly influences the fee setting approach at Australian universities.
2021 and beyond
As we know, the international education sector is dealing with a period of uncertainty, complexity and confusion unlike anything we’ve known before. To mitigate the uncertainty created by COVID-19, it is expected that universities and international applicants will consider additional data in more detail to support their future decisions.
It is expected that the strong relationship between these variables will most likely remain strong in the future. As a result, consulting this valuable data may support better informed decisions for 2021 and beyond.
We do however need to consider that in “the new normal” and with a period of high unemployment across the globe, it is possible that international applicants may place importance on other aspects of the rankings such as employability and graduate outcomes offered by each university. If this occurs, this may affect the relationship which exists between rankings and international tuition fees.
Studymove is keeping a close eye on the data and will see how things evolve in 2021. Our new insights for 2021 related to fees and rankings will be presented in our 2021 International Fees and University Rankings in Australia Report which will be released in the coming months.
In the meantime, our 2020 report is available now and will provide your institution with valuable insights to assist and supporting your planning for 2021.
Contact us to find out how affordable our reports are. We can also send them to you within two business days!
Don’t waste time collating and analysing the data yourself, we have done all the hard work for you!
For more information, please contact Keri Ramirez, Managing Director of Studymove at This email address is being protected from spambots. You need JavaScript enabled to view it..